Which of the following items is not reported in the operating section of the statement of cash flows using the direct method?
A)Depreciation expense.
B)Cash paid to suppliers.
C)Cash received from customers.

Question

Quizplus · Accepted Answer

Depreciation expense is a non-cash expense and is therefore not reported in the operating section of the statement of cash flows using the direct method. Instead, it is added back to net income in the reconciliation of net income to net cash provided by operating activities. Cash paid to suppliers and cash received from customers are both reported in the operating section using the direct method.

Which of the Following Items Is Not Reported in the Operating